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MasterMath

Margin Call Calculator

1,000 at 30x leverage controls a 30,000 position, and every 1% move swings your account by 30%. A fall of just 1.67% closes you out.

Currency and number format for

You are closed out if the price falls

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You are closed out if the price falls—
Forced-close price—
Margin call price—
Position you control—
Loss up to the close-out—
Every 1% of the price—

How this was worked out

    Indicative result. Nothing here is investment advice. Leveraged trading can lose more than your deposit, and stop-out levels vary by broker.

    The formula

    close-out fall = (100 − stop-out level) ÷ leverage

    Where it comes from

    Leverage multiplies both the position and the effect of every price move on your own funds. The broker closes the trade when your equity falls to a set fraction of the margin required, so the higher the leverage the smaller the move that gets you there.

    How to work it out by hand

    1. Multiply your funds by the leverage to get the position size
    2. Each 1% move in the price moves your equity by the leverage in percent
    3. Work out the fall that takes your equity to the stop-out level
    4. Convert that percentage back into a price

    What is worth knowing

    At 30x, a 3.33% adverse move wipes out the account entirely and the broker closes you at half that. Markets move 3% on ordinary news. This is the arithmetic behind the fact that most retail leveraged accounts lose money, and brokers in several jurisdictions are required to publish exactly that figure. Two details worth knowing: overnight financing is charged on the whole position, not on your deposit, so a 30,000 position costs interest even while it goes nowhere; and on a weekend gap the price can jump straight past the stop-out level, which is how accounts end up negative.

    Frequently asked questions

    What is a margin call?

    A warning that your equity has fallen to the level where the broker requires more funds. If it keeps falling to the stop-out level, positions are closed automatically.

    How much can I lose?

    In principle more than your deposit, if the price gaps past the stop-out level. Some brokers offer negative balance protection; many do not.

    Why does leverage feel so different from a normal position?

    Because the percentage move on your own money is multiplied. At 30x, a 1% move in the market is a 30% move in your account.

    Does holding overnight cost anything?

    Yes. Financing is charged on the full position size, so a heavily leveraged trade bleeds even when the price does not move.